In this episode, I had the pleasure of speaking with Stephen Goldstein, a seasoned trader turned performance coach. Stephen shared his extensive journey in the trading world, starting from his early days in the mid-1980s when he began his career at a Japanese bank in London. He detailed his progression through various roles, including his time at Credit Suisse and Commerzbank, where he honed his skills in interest rate and FX trading. Stephen's career culminated at American Express, where he spent seven years as a prop trader before transitioning to coaching in 2010.

Stephen's transition to coaching was inspired by his own positive experience with a coach during his trading career. He now focuses on helping traders, from professional investors to retail traders, enhance their performance by addressing the psychological and emotional aspects of trading. Stephen emphasized the importance of understanding oneself as a risk-taker and maintaining a positive relationship with oneself to succeed in trading.

We delved into the challenges traders face, such as self-sabotage, emotional control, and the importance of staying on process. Stephen shared valuable insights on managing risk, the significance of having a structured approach, and the necessity of experiencing the pain of trading to learn and grow.

Stephen also discussed his book, "Mastering the Mental Game of Trading," which aims to provide traders with a comprehensive guide to navigating the mental challenges of trading. The book is filled with real stories and practical advice to help traders develop a mindset that increases their chances of success.

00:00:00 - Introduction and Early Career
00:00:48 - Transition to Interest Rate and FX Trading
00:01:20 - Move to Credit Suisse and Prop Trading
00:01:40 - Career at Commerzbank and American Express
00:02:25 - Career Crossroads and Transition to Coaching
00:03:12 - Becoming a Performance Coach
00:04:19 - Influence of Performance Coaching
00:04:50 - Early Life and Motivation for Trading
00:06:34 - Initial Experience in Trading
00:06:58 - Starting in Fixed Income and FX
00:07:55 - Reality vs. Movies: Trading in Investment Banks
00:10:10 - Challenges in Trading
00:12:13 - Mindset and Routine in Trading
00:14:29 - Scaling Trades and Risk Management
00:19:15 - Performance Coaching Approach
00:21:44 - Common Issues Faced by Traders
00:24:09 - Trends and Cautions in Current Markets
00:26:18 - Online Prop Firms: Concerns and Changes
00:29:02 - Overcoming Losses and Mental Challenges
00:37:03 - Personal Experiences and Self-Improvement
00:39:10 - Insights from the Book
00:42:35 - Closing Tradition: Question for the Next Guest
00:46:11 - Where to Find Stephen Goldstein

Bookmap Link - https://bookmap.com/members/aff/go/Drake44

ATAS Platform - https://atas.net/?rs=partners_oft290559

In this episode, I had the pleasure of speaking with Bear, a seasoned trader who shared his fascinating journey into the world of trading. Bear started his career in real estate investing, where he experienced significant success but eventually grew tired of the challenges associated with it. This led him to explore trading, initially through a somewhat reckless leap into futures trading after watching a YouTube video.

Bear's early trading days were marked by a mix of luck and a steep learning curve. He candidly shared how his rough childhood, where he had to fend for himself from a young age, instilled in him a resilience and a somewhat delusional confidence that he could succeed in any field, including trading.

One of the most intriguing parts of our conversation was Bear's discovery of a market inefficiency in the ES futures market, which he exploited successfully for a couple of years. This exploit was a turning point for him, providing the confidence and capital to dive deeper into trading. However, he also faced significant challenges, including a harrowing experience during the COVID-19 pandemic where a trade went disastrously wrong, resulting in a substantial financial loss and a long recovery period.

Bear emphasized the importance of forward testing over back testing, building a mental and physical database of trading setups, and the value of discretionary trading. He also discussed his approach to trade sizing, which involves grading trades and using exponential bet sizing based on the quality of the setup.

We delved into his preference for scalping, which he views as his primary income source, while also engaging in swing and big-picture trades. Bear shared his thoughts on the evolving efficiency of markets, the potential in obscure markets, and the importance of being open-minded and adaptable in trading strategies.

Towards the end of our conversation, Bear reflected on the importance of thinking outside the box and not blindly following conventional trading wisdom. He advised new traders to be critical of the information they consume and to develop their own discretionary trading skills.

Overall, this episode provided a deep dive into Bear's unique trading journey, his strategies, and the lessons he's learned along the way. It was an insightful discussion that highlighted the complexities and rewards of trading, as well as the importance of resilience and adaptability in this challenging field.

Sponsor Links: Bookmap - https://bookmap.com/members/aff/go/Drake44

ATAS - https://atas.net/?rs=partners_oft290559

In this episode, host Dan sits down with Tom, a former chemical engineer turned $600m futures trader, to discuss his unique journey into the world of finance. Tom shares insights from his early life, highlighting his analytical background and passion for math and science. He reflects on his hardworking upbringing, which included delivering newspapers and investing in mutual funds at a young age. After earning his degree in chemical engineering from Clarkson University, Tom navigated the realities of the economy and eventually transitioned into trading. Tune in to hear Tom's story and gain valuable perspectives on how an analytical mindset can influence success in the trading world.

ATAS Sponsor Link - Free Access

00:00:00 - Introduction and Early Life
00:00:39 - Guest Introduction: Tom's Background
00:01:08 - Tom's Early Analytical Interests
00:02:03 - College and Early Career
00:02:14 - Economic Realities and Financial Planning
00:02:46 - Minimalist Lifestyle and Early Investments
00:03:19 - Introduction to Stock Market
00:03:42 - Realization About Price Action
00:04:45 - Becoming a Trend Follower
00:05:08 - Technical Analysis and Charting
00:05:25 - Using Charts Over Tape
00:05:56 - Profound Realization About Charts
00:07:10 - Trend Following Philosophy
00:08:05 - Importance of Catching Big Moves
00:09:42 - Missing a Big Trade
00:10:23 - Commitment to Never Missing a Trade
00:12:06 - Support from Family
00:12:24 - Wife's Role in Supporting Trading
00:14:22 - Transition to Futures Trading
00:14:47 - Risks in Stock Market vs. Futures
00:15:53 - Tax Advantages of Futures
00:17:06 - Tax Straddles and IRS Rules
00:18:02 - Margin and Leverage in Futures
00:19:08 - Shorting Stocks vs. Futures
00:20:00 - Learning Curve in Futures Trading
00:20:21 - Diversification in Futures Markets
00:21:05 - Benefits of Diversification
00:23:07 - Advertisement Break
00:24:10 - Focus on S&P 500 Futures
00:24:42 - Challenges and Learning in Trading
00:25:05 - Struggles in Early Trading Years
00:26:08 - Learning from Losses
00:26:40 - Influence of Larry Height
00:27:02 - Importance of Bet Size
00:28:05 - Risk Management and Position Sizing
00:29:20 - Finding the Optimal Bet Size
00:30:23 - Book on Position Sizing
00:31:02 - Book Details and Availability
00:32:18 - Automation in Trading
00:32:29 - Leveraging Time with Technology
00:33:23 - Automating Trading Processes
00:34:06 - Example of Manual Data Entry
00:35:56 - TrendsStat Overview
00:36:07 - Success and Retirement
00:37:08 - Memorable Trades
00:37:22 - Japanese Yen Trade
00:38:38 - Importance of Catching Every Trade
00:39:36 - 80-20 Principle in Trading
00:39:47 - Mindset and Routine
00:40:14 - Balanced and Agnostic Approach
00:41:09 - Observing Market Movements
00:42:03 - Developing and Executing Strategies
00:43:12 - Emotional Detachment in Trading
00:44:10 - Importance of Flawless Execution
00:44:58 - Ideal Bet Sizing
00:45:15 - Variability in Bet Sizing
00:46:09 - Personal Bet Sizing Strategy
00:47:02 - Client Risk Tolerance
00:48:18 - Stability in Client Portfolios
00:48:45 - Contrarian Trading During COVID
00:49:06 - Shorting Crude Oil During COVID